A Boralex subsidiary is to acquire controlling interests in seven solar farms in the US totalling 209MW from Centaurus Renewable Energy and other unnamed investors for C$283m (€182m).
Centaurus Renewable Energy and the other investors will retain certain non-controlling interests in the assets resulting in total net installed capacity to Boralex of 118MW.
The projects are located at the cities of Five Points, Huron, Kettleman City, Lancaster and Newman in California, and in Chambers County, Alabama, and Indianapolis, Indiana.
They were commissioned between 2014 and 2017 and have long-term power purchase agreements (PPAs) with the Regents of the University of California, Alabama Power Company, PG&E, Southern California Edison, City of Palo Alto, and Indianapolis Power & Light.
The PPAs expire between 2029 and 2046 with a remaining weighted average of more than 21.5 years.
The transaction is expected to close of 31 December, subject to the satisfaction of usual closing conditions, including receipt of FERC approval for the Lafayette and Five Points assets.
The PPA of the Lafayette asset contains a right of first refusal in favour of Alabama Power, pursuant to which the Centaurus Renewable Energy interest in the project can be acquired by Alabama Power within 60 days of being notified of a third-party binding offer by matching the proposed purchase price.
Boralex said it does not know whether Alabama Power intends to exercise the right or not.
The acquisition of the interest in this specific asset is therefore subject to the waiver or expiry of this right, the company said.
Boralex chief executive Patrick Lemaire (pictured) said: “The acquisition of Centaurus’ interest in seven solar plants will mark Boralex’s entry into the California, Alabama, and Indiana markets.
“The acquisition of interests in these high-quality assets secured by long term contracts is perfectly aligned with the growth and diversification orientations of our 2023 strategic plan.
“We are extremely pleased with the stable stream of cash flow and strong growth potential this transaction is bringing to Boralex.
“This transaction will be accretive to discretionary cash flow per share in the first year and will be a springboard to further development in these new regional energy markets for Boralex, especially California.”